Vodafone Thought Ordered to Convert Dues From Authorities Price Over Rs. 16,000 Crore Into Fairness


Troubled Indian cellular service supplier Vodafone Thought mentioned on Friday the federal government had ordered the corporate to transform into fairness all of the dues owed to the federal government to be used of airwaves together with the curiosity associated to funds for spectrum.

The entire quantity to be transformed into fairness shares is Rs. 16,133 crore, the cellular service mentioned.

The corporate mentioned it has been directed to situation 16.13 billion shares at 10 rupees every. Fairness shares of face worth of Rs. 10 every shall be issued to the federal government on the identical value.

The conversion of Vodafone Thought dues into fairness was permitted by India’s capital market regulator, Reuters reported in October final 12 months.

“Ministry of Communications…handed an order right now ie 3 February, 2023…directing the Firm to transform the NPV of the curiosity associated to deferment of spectrum public sale instalments and AGR Dues into fairness shares to be issued to the Authorities of India,” the submitting mentioned.

The aid for the corporate comes as a part of the reforms package deal introduced by the federal government in September 2021.

Earlier, VIL had mentioned that with conversion of dues into fairness, the federal government will get round 35 p.c stake within the firm.

Shares of VIL closed at Rs. 6.89 apiece on Friday on the BSE, up by 1.03 p.c in comparison with earlier shut. The submitting got here after market hours.

In 2021, the Indian authorities permitted a rescue package deal for debt-strapped telecom firms, permitting them to transform curiosity on deferred adjusted gross income owed to the federal government into fairness.

India’s telecom sector was disrupted by the entry of billionaire Mukesh Ambani’s Reliance Jio that pressured some rivals out of the market. The sector’s troubles had additionally been compounded by giant dues owed to the federal government.

The nation’s high court docket in 2020 gave telecom corporations 10 years till 2031 to clear the dues. 

 


Affiliate hyperlinks could also be routinely generated – see our ethics assertion for particulars.



Source link

Related articles

GBPUSD Evaluation: The Pound Trades Larger However For How Lengthy?

The worldwide Shares Markets are closed as a consequence of Easter Friday (Good Friday). The NASDAQ continued to observe the sideways pattern whereas different indices once more rose. The SNP500 reaches an all-time excessive,...

NaaS Know-how, Inc. (NAAS) This fall 2023 Earnings Name Transcript

NaaS Know-how, Inc. (NASDAQ:NAAS) This fall 2023 Earnings Convention Name March 28, 2024 7:00 AM ET Firm Individuals John Wang - Director, IRCathy Wang Yang - CEOWu Ye - Chief Technique OfficerAlex Wu...

Ethereum Worth Gearing For One other Elevate-Off to $4K: Improve Is not Over But

Ethereum worth is holding beneficial...

USD/JPY, EUR/JPY, GBP/JPY at Vital Juncture

This text focuses totally on the technical outlook for the yen. For a deeper understanding of the basic components driving the Japanese foreign money's trajectory within the second quarter, be happy to obtain...

Cathie Wooden’s ARK buys over $14M in Tesla inventory, sells Coinbase in newest trades By Investing.com

Cathie Wooden's ARK ETFs have made important strikes within the inventory market on Thursday, March twenty eighth, 2024, with Tesla Inc (NASDAQ:) and Coinbase International Inc (NASDAQ:) being the centerpieces of...
spot_img

Latest articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here